Introduction

Traditionally, it is difficult to give donations and propel non-profit organizations to realize that the donations are declining. Typically, in-person events involve a lot of complications and fluctuate all the time. And this is where non-profits can use data analytics to streamline the process to give donations. | How Data Analytics Can Improve

Despite the financial and geographical fluctuations of an event, non-profits can use a data analytics solution to address the most problematic issues and automate the process to donate. It is crucial for non-profit organizations to leverage current and updated donor information in order to get familiar with the donating habits of different individuals.

This, in turn, allows non-profit organizations to improve their messaging around donations and charities. And depending on the conditions, it also influences consistent contributions from different patrons. Keeping that in mind, let’s take a look at what makes data analytics attractive for non-profits:

Why Non-Profits Should Use Data Analytics

Most non-profit organizations are often surprised to find out the powerful and positive impact of using advanced data analytics. Right off the bat, non-profits can use data analytics to forecast potential outcomes related to fundraising.

Also, non-profits can use predictive modeling to optimize the fundraising process. Many non-profits use data analytics to integrate their internal data with US Census to better understand the demographics of their donors.

In the last few years, Data Analytics has become more important for non-profits. In fact, there is a high demand for concentrated data and it is a perfect time for non-profits to leverage data analytics. Through data analytics, non-profits can dive into data lakes, reserve more digital resources, and connect data silos.

Once non-profits figure out to harness the power of big data through data analytics, it allows them to step up their digital transformation. For modern-day non-profits, fundraising and donating is moving to mobile applications and online sites.

Non-profits can use dedicated storage servers to store a high volume of data that grows exponentially. Ultimately, more data accessibility means more chances to inform potential donors about fundraising options and upcoming campaigns and conduct surveys.

Although non-profits don’t “have to” use data analytics, it makes perfect sense to leverage data analytics to optimize, influence, and streamline fundraising activities. From service initiatives to transactions, non-profits can streamline their existing processes through data analytics.

Benefits and Reasons to Use Data Analytics for Non-Profits

Impress Donors and Grantors

With data analytics, non-profits can make a great impression on their major donors and grantors. Usually, funders and grantors want to learn about your charitable service programs and how they would improve people’s lives.

You can use data analytics to centralize categorical data from different sources and focus. You can also use data analytics to quickly render metrics and focus on potential program outcomes and such as cost-revenue ratio, quality, and effectiveness.

Get More Value from Your Current Donors

One of the perks of using data analytics is that it allows non-profits to get more value from their current donors. With data analytics, non-profits can better identify opportunities, and patterns, and analyze renewals and donor engagement.

In terms of donor patterns, you can tap into more membership cross-selling and focus on either recurring donations or one-time gifts. Through data analytics, it becomes also easier for non-profits to find out who, where, and when to target donors and roll out tailored service programs.

Optimize Workforce Resources

Non-profits can use data analytics to optimize their volunteer and staffing resources. You can use interactive dashboards and insightful reports to understand the “real” impact of investments and improve engagement efforts with donors.

Non-profits can use demographic analytics to improve overall volunteer conversion. On the other hand, non-profits can use spatial analytics to ensure volunteers align with specific donor service opportunities and programs.

Make Calculated and Informed Decisions

Usually, non-profits are careful about their budget allocation and expenses. With data analytics, you can make more logical, calculated, and informed decisions in line with “your” budget and expenses. Unlike conventional financial reports, data analytics can provide accurate reports to non-profit organizations.

Data analytics helps non-profits to better pair their operational performance with financial performance. This allows non-profits to find out which investments render a positive impact based on their service donation programs.

After that, non-profits can assign a specific budget and expenses to maximize the total funds. Non-profits can also count on a data analytics solution to paint a clear picture of investments and improve potential outcomes.

Conclusion

Data analytics gives non-profits the perfect opportunity to streamline the entire process to accept and influence donations. Through descriptive and predictive analytics, non-profits can reap more benefits and improve their fundraising process. Fortunately, most non-profits have started to realize and recognize the benefits of using data analytics.

Although using data analytics may look too complicated, it allows non-profits to collect and review data efficiently. When it comes to modern tech innovations, the last thing charitable organizations need is to get left behind. Once non-profits figure out the use cases of data analytics, it is bound to improve their bottom line. In retrospect, many non-profits now use data analytics to implement a successful data strategy to survive and thrive.

REFERENCES:

1. https://www.datapine.com/blog/kpi-tracking-software-and-tools/
2. https://biztechmagazine.com/article/2020/06/beginners-guide-business-analytics-nonprofits-perfcon#:~:text=Data%20analytics%20offers%20a%20way,to%20drive%20consistent%20charitable%20giving.
3. https://www.sandiego.edu/news/detail.php?_focus=75845
4. https://www.sandiego.edu/news/detail.php?_focus=75845#:~:text=Analytics%20can%20help%20nonprofits%20track,making%20it%20easier%20to%20analyze.
5. https://research.g2.com/insights/why-data-analytics-matter-for-nonprofits
6. https://www.alteryx.com/alteryx-gives-back/non-profits